Most people know that if you stop making your mortgage payments, you run the risk of your lender foreclosing on you. Many though, do not understand exactly how foreclosure works. If you are worried that you are at risk of being foreclosed upon, or if your lender has already started the foreclosure process, it is especially important to understand how foreclosure works. The better you understand the process, the timing, and what your lender wants out of it, the more options you will have for fighting that foreclosure.
Doesn’t it always seem to be a case of good news/bad news? The good news this week is that, as reported by DSNews, the percentage of Americans who are underwater on their mortgages continues to decline - down to less than 12% as of the third quarter this week. But the bad news is that the balloon payments on numerous Home Equity Lines of Credit, or HELOCs, will be coming due in the next few years, putting many more homeowners who are underwater with their mortgages at risk of foreclosure.